Construction service for police housing exempt from service tax due to government ownership and personal use.

The Tribunal determined that the construction service provided to Gujarat State Police Housing Corporation Limited for building a residential complex for police staff is not liable to service tax. The Tribunal emphasized the corporation's government ownership and the intended personal use of the construction, citing relevant legal precedents to support its decision. As a result, the Tribunal allowed the appellant's appeal and dismissed the Revenue's appeal, settling the issue based on established judgments.

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Issues involved:
Determining liability for service tax on construction service provided to Gujarat State Police Housing Corporation Limited for constructing a residential complex for police staff.

Analysis:

Issue 1: Liability for service tax on construction service provided to Gujarat State Police Housing Corporation Limited
The Appellate Tribunal considered whether the service provided to the Gujarat State Police Housing Corporation Limited for constructing a residential complex for police staff is liable to service tax. The appellant's counsel cited various judgments to support their case, emphasizing the nature of the recipient organization. The Revenue's representative reiterated the findings of the impugned order. The Tribunal examined the ownership of the corporation and concluded that it is 100% owned by the Government of Gujarat under the Ministry of Home Affairs. Previous judgments, including those involving similar entities, were referenced to establish the corporation's status as a government organization. Notably, the Tribunal referred to specific cases like Sh. DH Patel and Sh. RN Dobariya vs. CCE, Surat, and Sh. S. Kadirvel vs. CCE & ST, Trichy, to support the decision. The Tribunal highlighted that the construction was intended for personal use, which excluded it from service tax liability. Consequently, the Tribunal allowed the assessee's appeal and dismissed the Revenue's appeal, emphasizing that the issue was no longer res-integra based on the cited judgments.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved, the arguments presented by both parties, and the Tribunal's reasoning based on relevant legal precedents.

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